Conditional Grants Presentation

1. Conditional Grants Presentation Northern Cape Province Select Committee on Finance – Tuesday 07th June 2005

2. Vision Health service excellence for all.

3. Mission Empowered by the Peoples‘ Contract, we are committed to provide quality health care services; we will promote a healthy society in which we care for one another and take responsibility for our health; our caring, multi-skilled professionals will integrate comprehensive services, using evidence-based care-strategies and partnerships to maximise efficiencies for the benefit of all.

4. Trends in Allocations

5. Trends in Allocations • The conditional grants increase at a dramatic rate over the six year period indicated above. • The first MTEF period (2002/03 – 2004/05) shows a overall increase of 67%. • The main contributors to this increase are the Hospital Revitalisation and comprehensive HIV & AIDS grants. • The decrease in Integrated Nutrition Programme is because of the Primary School Nutrition component being managed by the Department of Education from 2004/05.

6. Trends in Allocations • The second MTEF period (2004/05 – 2007/08) shows an overall increase of 166%. • The other grant that show a dramatic increase of 208% is the National Tertiary Services grant. • The Integrated Nutrition Programme is phased out in 2006/07.

7. Conditional Grants Expenditure Performance

8. Conditional Grants Expenditure Performance

9. Conditional Grants Expenditure Performance • The Department spent all its conditional grants in 2002/03 except the small under-expenditure of 1.8% on the Hospital Revitalisation.

10. Conditional Grants Expenditure Performance

11. Conditional Grants Expenditure Performance

12. Conditional Grants Expenditure Performance • The under spending on capital is mainly because of the following: • Delays by Public Works with the tendering process (eg advertisement, adjudication and awarding of contracts) • Lack of appropriate skills and capacity in Public Works. • The revision of the designs to include the requirements of the Health and Pharmaceutical Acts. • Lack of business principles by contractors resulting in cash flow problems and delays in completion of contracts.

13. Conditional Grants Expenditure Performance • No reference bench marks of design exist nationally on the Mental Health facility as no new facility has been built in more than the last two decades. • The availability of material in the rural areas poses a challenge for the timely completion of projects.

14. Conditional Grants Expenditure Performance • Remedial Measures • Formal establishment of the Departmental project office to maintain pressure on implementation process rendered by the Department of Public Works. • Appoint appropriate technical assistance to render advise for the management of cash flow, the resources and time management. • Delegation of the tender processes to the Departments as part of their Supply Chain Management. • Capacity of contractors to be categorised into their appropriate levels of capacity.

15. Conditional Grants Expenditure Performance

16. Conditional Grants Expenditure Performance

17. Monthly Reports • The Northern Cape Department of Health is the receiving Department and does not transfer grants to other departments or institutions.

18. Hospital Revitalisation • Number of hospitals completed on the programme - 2 • Each completed hospital should have achieved modernized infrastructure, up to date equipment, improved management systems and quality assurance systems.

19. Economic spin offs • Unemployment in the Northern Cape is high. • Revitalisation projects assists in improving the economic climate • Multi – procurement policy • Capacity building

20. Submission of Business Cases – 2005/06 • Business Cases have been submitted

21. THANK YOU